Fortune 500 Consumer Products Company
Client desired to expand their Supplier Diversity Initiatives. Client had tried in the past to enhance partnerships in multiple indirect spend categories but encountered challenges. The requirement was to develop additional relationships with minority suppliers without sacrificing benefits in each of the programs. The challenge in meeting this requirement was to identify potential diverse suppliers that could meet not only the Client’s needs and overall service burden, but also maintain the competitiveness of their pricing and program.
As an accredited minority supplier, CenterPoint was uniquely positioned to collaborate on this important initiative. Our deep understanding and experience with Supplier Diversity and its drivers was pivotal in the success of the project.
During the initial due diligence and data gathering phase, several indirect spend areas (office supplies, lab supplies, and MRO (changed from Shipping)) were identified as opportunities to utilize a Minority Business Enterprise. As part of this phase, CenterPoint utilized our deep industry knowledge and database and identified a list of qualified suppliers that could meet our Client’s requirements in each of the spend categories. Only those suppliers that had a proven track record were considered.
Once the short list was assembled, CenterPoint conducted a competitive bid process that considered both Minority-Owned and traditional candidates and at least one diversity supplier was invited to participate for each category.
Upon completion of the sourcing events, the Client was able to award over $3 Million in business to Minority-Owned suppliers while significantly reducing costs in each spend category.
- Pre – CenterPoint Spend: $6.1 Million
- Post – CenterPoint Spend: $4.6 M (with $3.0M awarded to diverse suppliers)
- Savings: $1.5 Million (24.5% savings)